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For a video tour, please visit: https://vimeo.com/251882909
TWO MH/RV COMMUNITIES266 MH SITES / 74 RV SITESPRICE: $5,300,000
PLEASE DO NOT SPEAK WITH TENANTS OR EMPLOYEESDonna, TX
78537
INVESTMENT HIGHLIGHTS• Located in the beautiful Texas Rio Grande Valley, this offering includes
Shady Acres Resort, Shady Acres Family Community, and Magnolia Village. Only a few minutes apart, they are operated together. Shady Acres Resort and Magnolia Village are 55+ properties while Shady Acres Family Community is all age.
• The parks are cross collateralized with an attractive CMBS loan that needs to be assumed with a 5.1% interest rate. The current debt has a prepay lockout until August 2018.
• Combined, the communities contain 266 manufactured housing and 74 RV sites. Economic occupancy at the communities is at a healthy 77% for the manufactured housing sites and includes only nine park-owned homes, of which three are currently occupied. There is an opportunity for a buyer to continue to bring in homes and sell them to drive occupancy.
• The current owner has done a tremendous job improving the properties. For example, they eliminated gas income and expense at all the properties by moving Shady Acres to propane and getting Texas Gas to direct bill tenants at Magnolia Village. Capital Expenditures at all communities include repaving, tree removal and trimming, new signage, and replacement of outdoor lights. At Magnolia Village, the owner updated fencing around the property, installed a new HVAC system in the dance hall (where the tenants are paying utilities for this), placed new oleander hedge throughout the community, put in a new lift pump, and upgraded the office.
• Shady Acres Resort and Magnolia Village offers its residents plenty of amenities and services including a heated swimming pool, shuffleboard courts, game room, air-conditioned clubhouse, shower and laundry facilities, live music area, and church services.
• Utilities are public and the area has excellent demographics with a population of over 375,000 within a 10-mile radius from the communities.
SITE INFORMATION
ADDRESSESShady Acres Resort: 310 Hester AveShady Acres Family Community: 310 Scobey Ave Magnolia Village: 3707 West Business 83
COUNTY Hidalgo
YEAR BUILT 1967
TAX PARCEL IDS 208252/ 206100/ 206184
TOTAL MH SITES 266
TOTAL RV SITES 74
COMMUNITY TYPEAll Age (Shady Acres Family Community) & 55+
(Magnolia Village and Shady Acres Resort)
LAND SIZE 33.11 acres
DENSITY 10.24 sites/acre
INVENTORY HOMES 9 (3 occupied as of Feb ‘18)
AVERAGE LOT RENT $284 for MH units / $210 for Park Model units (base rent only)
LAST RENT INCREASE $16 (Nov ‘17)
MH PHYS OCC 83.71% (221 sites as of Feb ‘18)
MH ECO. OCC 77.07% (205 sites as of Feb ‘18)
ROADS Asphalt
FLOODPLAIN No
ZONING R2 (Multifamily residential)
WEBSITES shadyacresrvresort.com; magnoliarvresort.com
UTILITIES
WATER/SEWER City of Donna (RUBS)
GAS Texas Gas (Magnolia Village only; direct billed)
ELECTRICITY AmeriPower (direct billed)
TRASH Republic Services (owner pays)
PARK NAME 55+ ALL AGE MH SITES RV SITES
SHADY ACRES RESORT X 91* 22
SHADY ACRES FAMILY COMMUNITY
X 21 -
MAGNOLIA VILLAGE X 154 52
*Includes 1 tenanted site-built rental
266 MH SITES / 74 RV SITES | DONNA, TXPRICE: $5,300,000
PROPERTY DETAILS
EXISTING LOAN INFORMATIONORIGINAL LOAN AMOUNT $3,120,000CURRENT BALANCE $3,050,556INTEREST RATE 5.10%MATURITY DATE 7/1/26TERM (YRS) 10AMORTIZATION (YRS) 30I/O (YRS) 0MONTHLY PAYMENT $16,940PREPAYMENT LOCKOUT Until August 2018LENDER Conduit
AREA HIGHLIGHTS
• The communities are conveniently located in the Rio Grande Valley, midway between Harlingen and McAllen, and within a 30-minute drive to the Mexico border. The Valley encompasses numerous towns clustered at the southern tip of Texas and the area is home to an estimated 1.4 million residents.
• The McAllen MSA, which encompasses all of Hidalgo County, has experienced rapid population growth resulting in an estimated 2022 population of approximately 943,620, making it the fifth largest MSA in Texas. Moderate incomes in the area coupled with rapid population growth drive demand for affordable housing.
• Hidalgo County’s economy is currently experiencing a surge in development due primarily to growth in international trade, retail trade, tourism and manufacturing industries. 80 of Fortune 500’s global manufacturers have operations in the region, including AT&T, Bissel, Black & Decker, BMW, Delco, Drexel Meyers, Sony and more. The top four employment sectors in the Hidalgo County MSA are educational services, retail trade, healthcare and construction, which account for 52% of the employed residents in the county.
• Access to the United States-Mexico border is also a critical component to the economic stability of the region. It is estimated that cross-border commerce creates nearly 9,650 jobs and contributes about $800 million annually in total economic impact. Around 3,600 people cross the border daily to work in Mexico; the majority tend to be plant managers or engineers that have manufacturing facilities in Mexico.
• Located deep within South Texas, the Rio Grande Valley is a hot spot for snowbirds, tourists and retirees. The region’s mild climate and beautiful scenery attract visitors from across the nation. 51,000 Winter Texan households visited the Valley during the 2015-2016 season. The average Winter Texan is 72.3 years of age, owns an RV or mobile home, and has plans to return next season, creating large demand for 55+ MH/RV housing.
• The communities are near large retailers such as Home Depot, HEB, and Walmart as well as the highly rated medical centers, Mission Regional Medical Center and McAllen Medical Center. The communities are also served by two major international airports, McAllen International Airport and Rio Grande Valley International Airport, both within a 30 minute drive of the properties.
3707 E US Business 83 | Donna, TX 78537 | 956.464.2421
E Business Hw
y 83
Midway Rd
Cumm
ings Ln
Fir
Pecos
Texas
Center
Willow
Cottonwood
Magnolia
Cherry
Aspen
Lime
Peach
Rose
Pine
Maintenance
Shop
Ole Blue Hall
Laundry
Allen Hall
Shuffleboard
Mailboxes
Pool
Bath House
BathHouse
Office
Game Room
Dumpster
Future DogPark Area
RV Storage
Cart Path
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6169 68
241 240 239
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420419417415413412410
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332 333 334 335 336 337
323 324 325 326 327 328
312 313 314 315 316 317 318 319
238 237 221 220 219 218 217 216
67 62 63 64 65 66489
488
310 Hester Avenue | Donna, TX 78537 | 956.464.2241
266 MH SITES / 74 RV SITES | DONNA, TXPRICE: $5,300,000
AREA HIGHLIGHTS
Assumptions3 Gross Scheduled Rent 0.00%
Gross Potential Income
Less: Vacancy 23.02%
Less: Bad Debt 0.25%
Less: Concessions 1.99%
Total Rental Income 74.74%4 Plus: Other Income $294 Plus: Utility Income 1885 Plus: RV Lot Rent 1365 Plus: Home Rent 78
Total Other Income 430
Effective Gross Income
EXPENSES per site
Repairs & Maintenance $1106 Payroll 255
Administrative 30
Marketing 10
Professional Fees 57 Utilities
Electricity 131
Water & Sewer 181
Gas 14
Trash 56
Total Variable Expenses $7928 Taxes 294
Insurance 80
Management Fee 4.00%
Total Operating Expenses $1,2799 Plus: Capital Reserves 50
Total Expenses $1,329
NET OPERATING INCOME
Expense Ratio
3,600
97,516
127
0 1,325
14,773
20,676
$209,808
0
33,64633,725
424
$753,078$704,840
90
7873
8
per site
27
11,892
97,516
13,250
89 23,664
$339,02830,123
0
45
00
17
127
236 62,588$37,035
Actual Exp
88,621
413
334
31
117
112,284
7,950
20,676113,954
$7,412
109,481
35,942 35,94249,702
136
$629,051
$29,611
Proforma
$724,279
48,254
INCOME$855,168
2,138
44,706
7,273
28,273$394,723$1,490
48.05%
48,03634,737
14,475
2,000
0$348,048
77,897
$639,124$7,635
2,650
$29,15067,587
Proforma
28,971
0$352,278
$376,231
$747
$1,490
23,850
$1,313
56.00%
$310,117
$1,313
0
$348,0484.00%
$394,723
195
31,033
Jan '18 T12 Actuals1 Jan '18 T12 Adjusted2
Financial Analysis
$622,153
25,260
$140
per site
17,0560
$622,153
0
$27
$629,051
0
$611,994
1,534
$595,359
19,393
$7,27151,783
$28
$197,897
Actual Exp
$112
368
182
55
8,280
46,637
4,552
169
$245,085
176
$925
368
54
14
14,343
4.01%
$400,801
17,056
46.78%
$855,168
196,850
21,200
3,600
1. ActualNumbersbasedonfinancialsprovidedbytheclient
2. Jan’18T12Adj-clientsadjustedlineitemsthatarenonrecurring/unrelatedtooperations.
a. GSR-$16rentincreaseimplementedNov2017
b. Concessions-nolongergivefreelotrenttomanager(managerterminated)
c. UtilityIncome-Shutdownpark-ownedgaslinesandincreasedwaterrebillingratehalfwaythroughtheyear
d. Repairs&Maintenance-Outsourcedlawncarefor$900permonth;installednewsewerlines&poolpumpinQ42017;excludesgaslineinspections&reportingexpenses;excludescertainexpensesrelatedtoequipmentrepairs&parksuppliesduetooverspendingin2017
e. Payroll-laidoff2maintenanceemployees.
f. GasUtility-Shutdownpark-ownedgaslines;turnedovertoTexasGasfordirectbilling
3. ProformaGSR=265MHsitesx$269avgrentx12months($284/monthforMH&$210/monthforParkModels).
4. UtilityandOtherincomegrown3%fromJan’18T12Adjusted.
5. RVlotrentandhomerenttakenfromJan’18T12Adjusted.
6. Newpropertymanagerhiredin2018;thisisreflectedintheproforma.
7. AdjustedUtilitiesgrown3%fromJan’18T12(exceptforgas).GastakenfromJan‘18T12Adjusted.
8. ProformaTaxes=2018assessedvaluesx2017millrates.
9. Numbersdonotreflectactualexpense.
UNDERWRITING ASSUMPTIONS
266 MH SITES / 74 RV SITES | DONNA, TXPRICE: $5,300,000
FINANCIAL ANALYSIS
1
2
3 45
266 MH SITES / 74 RV SITES | DONNA, TXPRICE: $5,300,000
rent comparables
SUMMARY
PROPERTY ADDRESS # OF MH SITES
# OF RV SITES
PHYSICAL OCCUPANCY
AVG RENT
RENT INCLUDES
ADJUSTED RENT
1 Alamo Palms* 1341 West Business 83 Alamo, TX 78516 291 344 88% $411 T $396
2 Casa Del Sol* 400 N. Val Verde Rd Donna, TX 78537 375 100 97% $290 T $261
3 Casa Del Valle* 1048 N. Alamo Rd Alamo, TX 78516 139 233 93% $350 W/S/T $288
4 Trophy Gardens 800 SH 495 Alamo, TX 78516 284 400 93% $370 W/S/T/L $288
5 Winter Ranch 600 SH 495 Alamo, TX 78516 269 0 98% $370 W $346
TOTALS 1,358 1,077 94% $358 $316
Shady Acres / Magnolia Village MH/RV Resorts
310 Hester Ave / 3707 W. Business 83 Donna, TX 78537
266 74 83.7% $284 None $284
*55+ communities | Source: Hidalgo County, TX JLT Market Report - September 2017 T – Trash; W – Water; S – Sewer; L – Lawn
266 MH SITES / 74 RV SITES | DONNA, TXPRICE: $5,300,000
DEMOGRAPHIC INFORMATION 3 MILES 5 MILES 10 MILES
2017 Population Estimate 44,443 116,963 377,900
2022 Population Estimate 48,175 126,111 408,429
2017 Renter Occupied Housing Percentage 21.0% 23.8% 26.1%
2017 Owner Occupied Housing Percentage 57.3% 58.7% 59.0%
2017 Estimated Average Family Household Income $41,518 $47,933 $49,363
Source: U.S. Census Bureau
TOP 10 HIDALGO COUNTY EMPLOYERS EMPLOYEES
Edinburg Regional Medical Center 3,000
University of Texas-Pan American 2,850
McAllen Medical Center 2,800
Hidalgo County 2,200
South Texas College 2,200
City of McAllen 2,000
Doctors Hospital at Renaissance 2,000
Rio Grande Regional Hospital 2,000
U.S. Customs and Border Protection 1,600
BBVA Compass Bancshares Inc. 1,500
Source: McAllen Economic Development CorporationNote: Excludes local school districts
area employment and demographics
MCALLENHARLINGEN
MEXICO
Red Gate Power Plant
EDINBURG
LA PLAZA MALL
RIO GRANDE VALLEY PREMIUM OUTLETS
SUPERCENTER
N
University of Texas Rio Grande Valley• The University of Texas Rio Grande Valley, with campuses in
Brownsville, Edinburg, McAllen, Harlingen and Rio Grande City, is a public research university that currently enrolls approximately 28,500 students per year.
• Offers more than 120 undergraduate and graduate degree programs.
• Recently opened the School of Medicine that offers students the most technologically advanced resources, including a 15,000-square foot Smart Hospital complex.
• The second largest Hispanic-serving institution in the nation.
South Texas College• Offers more than 119 degree and certificate program options
including degrees in a variety of art, science, technology and allied health fields of study.
• A public community college located throughout Hidalgo and Starr counties, which currently enrolls approximately 34,000 students per year.
Red Gate Power Plant• Uses 12 of the largest natural gas-powered reciprocating engines in
the world which produces enough energy to power approximately 50,000 homes
• Owned and operated by the South Texas Electric Cooperative, which is made up of eight member cooperatives, including the Hidalgo County based Magic Valley Electric Cooperative.
La Plaza Mall• One of the highest-grossing and largest malls in south Texas
totaling 1,500,000 square-feet of space.
• Features more than 150 specialty stores and attracts 18 million plus visitors annually.
• Draws from a consumer base of more than ten million people within a 200-mile radius in south Texas and northern Mexico.
Rio Grande Valley Premium Outlets• A 604,000 square-foot premium shopping destination 12 miles east
of Donna on Expressway 83.
• Home to 140 stores including Saks Fifth Avenue, Adidas, American Eagle, Ann Taylor, and Banana Republic.
• Attracts six million visitors per year.
266 MH SITES / 74 RV SITES | DONNA, TXPRICE: $5,300,000
location and attractions
This information has been derived from sources deemed reliable. However, it is subject to errors, omissions, price change and/or withdrawal, and no warranty is made as to the accuracy. Further, no warranties or representation shall be made by ARA, A Newmark Company (ARA Newmark) and/or its agents, representatives or affiliates regarding oral statements which have been made in the discussion of the above property. This presentation, prepared by ARA Newmark was sent to the recipient under the assumption that s/ he is a buying principal. Any potential purchaser is advised that s/ he should either have the abstract covering the real estate which is the subject of the contract examined by an attorney of his/her selection, or be furnished a policy of title insurance. Do not contact the Properties.
www.aranewmark.comManufactured Housing and RV Park Group: 901 S. MoPac Expressway, Barton Oaks Plaza II, Suite 275, Austin, TX 78746 T 512.342.8100
PRIMARY CONTACTS
Todd [email protected] T 303.260.4470
Andrew [email protected] T 512.637.1219
PLEASE DO NOT SPEAK WITH TENANTS OR EMPLOYEES
Additional information is available on our website at: http://arausa.listinglab.com/ShadyAcresMagnolia
For a video tour, please visit: https://vimeo.com/251882909
!
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